All Forum Posts by: Kevin Tunnell

@Grant Schroeder Ooo, that’s good information, thank you Grant! So, as long as I’ve got my down payment, somewhere in the ballpark of 25%, and my income qualifies me for the loan, I should be able to purchase OOS with little issue? 

@Tim Johnson Thanks for the advice! It sounds like as long as I have all my eggs in order ie: property value, cost of repairs, projected rental income, insurance, etc. and I qualify for the loan, then they shouldnt have an issue loaning me the money correct?

Hey guys, looking for some advice here. Where I live in California, it just simply isn’t realistic to buy anything with the salary I make currently. I live at home rent free and I know I want to get into the real estate game ASAP especially while interest rates are low seeing as they may rise soon. I was looking into purchasing OOS, particularly in the Georgia/Tennessee area.

My question: 

Is it frowned upon by banks or loaners to have my first purchase as a rental OOS? Or would it be okay considered my down payment would be well over 20% and the total loan amount would be less than my annual salary because of the cheaper real estate? 

@Jack Orthman

Thanks for the advice! I didn't know that with many condos you share expenses if they're grouped with other condos. That would definitely be unfortunate and not likely something I'd want to deal with. And you're right, I would love to save up for a 4 plex however I live in the northern Bay Area of California and buying a 4 plex would be nothing short of impossible on my income (about 65,000/year before overtime pay). I suppose I could apply for an FHA loan but even then I'm not totally sure I could find someone to finance the deal. Im working hard to develop high income skills at work to try and get a better income so I can qualify for larger loans but it'll take some time. I figured it'd be best to start smaller and work my way up to the multi family homes all the while increasing my income as well.

@AJ H.

I see, thanks for the advice, those are good questions I’ll have to consider! I suppose I should definitely look at each property while keeping in mind of what my goal is long term and not just the immediate satisfaction or return on investment.

My question is this, based off my income and down payment, I could purchase a 2 bedroom condo right now, but if I wait about 5-6 months I could have enough of a down payment to afford a 3 bed 2 bath single family home. I’d like to House Hack and I am a fairly handy guy and plan on doing some renovations myself. Which route should I go?

I really like the idea of waiting the extra time for the single family home as I feel I can do more home renovation and landscaping myself with the bigger home but getting into a home and building some equity during these low rates is also fairly appealing to me.

This would be my first deal so I haven’t quite found my niche but once I have some cash flowing rentals, I’d eventually like to get into some multi family homes. Any and all advice is appreciated!

@Lauren Heart

Thanks for the advice Lauren! Unfortunately, I work in Hayward so I’d still have a bit of a commute if I were to go to Fairfield. But if the deals are there, then I guess I better give it a look! And yes, my Grandfather always told me that his only regret with investing in general is that he wished he would’ve started sooner, so I’m taking his advice and getting started as soon as I can.

@Sean Resavy

No that’s perfect! I’ve read a few of those, and I’ll be reading the 48 Laws of Power shortly after I finish ABC’s of Real Estate! Thank you very much for the book recommendations!

@Mike Bolen

You really think it’ll appreciate that much!? Sounds like it would be very smart to get in that market right about now. I will for sure be on the lookout for some deals.

@Sean Resavy

I see, so not only will markets differ between states, counties, etc. but ALSO within a city in of itself. I’m guessing something like, nicer/ quieter neighborhoods will be priced higher. I definitely need to read up on how to analyze deals and understand the mathematics behind them and not just assume since something is priced low that it’ll be a good deal. And I just got ABC’s of real estate the other day so I will read it soon, any other books that come to mind, I’d love to hear about them! Thanks again for the reply!